Britain's Serco Group wins $2 bln Australian contract

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June 20 (Reuters) - Serco Group Plc <SRP.L> has won a
contract worth about A$2.6 billion ($1.98 billion) to operate
what will be Australia's largest correctional facility, the
British outsourcing company said on Tuesday.
    Winning the contract is a major boost for Serco, which has
been restructuring after a string of profit warnings.
    Serco is part of the NorthernPathways consortium which will
design, build and operate the New Grafton Correctional Centre
(NGCC) in New South Wales in a Public Private Partnership for
the New South Wales government.
    Serco, which said in March that it had been named as the
preferred bidder on the project, said its contract for operation
is expected to commence in 2020.
    Serco, which provides security, traffic, defence and
education services for governments across the world, has
suffered in recent years following problems with government
contracts that included overcharging the British government for
monitoring criminals and escalating costs on a deal to provide
accommodation to UK asylum seekers.
    Britain's outsourcing sector has also been hit by
uncertainty created by the country's vote to leave the European
Union, causing delays to contract decisions. [nL8N1G71LG]

($1 = 1.3139 Australian dollars)

 (Reporting by Arathy S Nair in Bengaluru, editing by Louise
 ((;  within U.S. +1 646 223
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This article appears in: Stocks , World Markets
Referenced Symbols: SRP

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